FLSmidth taps into Chinese pollution-control sector

China: The major Danish cement plant manufacturer FLSmidth has achieved authority approval of its first acquisition in China, which will help it to secure a lucrative share of the multibillion dollar Chinese market for environmental control technologies. The move comes less than a month after China announced new NOx emission regulations, providing an excellent market for FLSmidth's new capabilities.

Together with a minority shareholder, FLSmidth has started a company to market and sell air pollution control products to the cement industry in China. This local company is groundbreaking for FLSmidth as it combines local presence and relations with global technologies and resources. The founder company, Chinese Sino Environment Engineering Development Co. Ltd. (SEPEC), continues as a minority shareholder and brings a large reference base and contact network from the cement industry in China, both on a corporate and a plant level.

"FLSmidth and SEPEC are the perfect fit," said FLSmidth CEO Jørgen Huno Rasmussen. "FLSmidth's strong technological platform coupled with SEPEC's strong organisation, reputation and customer base in China will enable us to develop air pollution control products that are uniquely designed together with the Chinese customer and fit his specific requirements."

The local company will market FLSmidth's highly-efficient air pollution control products and thereby help Chinese cement manufacturers to fulfil the new and stricter emission standards imposed on the industry. As the majority shareholder, FLSmidth will retain the intellectual property rights to the technology. The Chinese market accounts for half of the total world market for air pollution control equipment. "With China's increased focus on environmental aspects as stated in the 12th five year plan, the timing of FLSmidth's local expansion is just right," said CEO of FLSmidth China, Anders Bech.